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MO HB759
Bill
Status
2/28/2013
Primary Sponsor
Caleb Jones
Click for details
AI Summary
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Clarifies that alcohol franchise arrangements between wholesalers and suppliers include relationships without requiring a trade name or trademark license, and without requiring a community of interest in marketing.
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Declares legislative intent that the definition of "franchise" should follow the interpretation in High Life Sales Company v. Brown-Forman Corporation (1992) and Brown-Forman Distillers Corp. v. McHenry (1978), rather than Missouri Beverage Company v. Shelton Brothers (2011).
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Exempts suppliers selling less than 2,500 cases of distilled spirits or less than 10,000 cases of wine annually from the requirement to establish good cause before terminating wholesaler franchises, but requires them to pay fair market value for lost distribution rights.
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Requires fair market value compensation to be calculated as either 2 times gross profit (for small wine suppliers under 1,000 cases) or determined by agreement with mandatory arbitration if parties cannot agree within 30 days (for larger small suppliers).
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Preserves wholesalers' right to sue suppliers for violations and recover damages plus attorney's fees, with supplier's good faith and good cause serving as a complete defense.
Legislative Description
Changes what is considered to be a franchise between alcohol wholesalers and suppliers
Last Action
HCS Voted Do Pass (H)
4/2/2013